(1888PressRelease) January 13, 2012 - MIAMI, FL - The fact that the price of gold has continued to rise despite a stronger dollar, combined with the observation that gold's rise no longer seems connected with the euro, which is recovering more slowly, may well indicate a return to safe-haven status for precious metals, gold bullion in particular.
The euro benefited for a while when France retained its triple-A credit rating but renewed concerns are surfacing about the situation in Italy. While Italy's economy is arguably too big to be allowed to fail, it may also be too big to rescue. According to a Reuters report, David Riley, head of sovereign ratings for Fitch, recommended that the ECB step up its buying of euro zone debt to help Italy avoid a monetary collapse that would be 'cataclysmic' for the euro. Since the euro is one of the world's reserve currencies, it must be protected at all costs. Riley's warning served to put further pressure on the euro and encouraged a gain in the dollar as the preferred safe-haven currency.
"Problems in Europe are clearly not going to be solved overnight, despite assurances from Ms Merkel and Mr Sarkozy about tighter fiscal union," says Bill Hionas of Pan American Metals of Miami. "However, while the future of the euro zone may be a key factor in the global economic situation, it does seem as if gold has broken away from the euro and is seeing its own safe-haven demand once again. Investors appear to be turning back to gold and silver as a hedge against inflation and for wealth protection."
About us:
Pan American Metals of Miami, LLC is a group of traders, investors and account executives that combines many years of experience to help clients invest in bullion. PAMM provides an individual investment service and is based in Miami, Florida for convenient access to both North and South American investors.
Debbie Bailey
Executive Administrator
Pan American Metals of Miami, LLC
Email: dbailey ( @ ) investpanam dot com
Website: http://www.panamericanmetalsofmiami.com
Precious metals experience renewed safe-haven demand. 
Satisfied Users & 
Approved Press Releases
Print
Email
Report Spam